Succession as a "legacy" and a tool for business renewal

In order to survive and thrive, businesses must evolve. Succession becomes a tool for renewal, aligning structures with talent and technology. Written by Theodore N. Krintas.

Back in 2016, some people referred to the turmoil caused by the 2008 financial crisis in banks, leading them to become introverted and focus on new regulations, resulting in a mediocre (sic) experience for their customers.

At that time, in other sectors where technology was leading the way, companies such as Apple, Amazon, and Meta were shaping new habits and a digital landscape. The new era brought a bunch of FinTech companies that offered innovative and affordable solutions with an awesome experience.

In Greece, developments were delayed due to the economic crisis that affected the whole of society, but today, we are fully in tune with the global pace and, following the example of the banking sector, with which we started, the "succession" was completed with the adoption of Open Banking and the sharp increase in the use of online banking.

A company's brand encompasses the trust, reliability, and importance of each company to the customer. Developments show that new competitors enter every gap that is created, while technology acts as a highway that reshapes the business landscape.

The points of contact between the brand and our customers determine the priority our company has in their minds. The generation that already has the largest population today prefers digital banks for their first account, shopping on e-commerce platforms, music streaming, and news from social media.

These platforms are expanding with enhanced personalization using artificial intelligence, integrating financial services into non-banking applications, and modern methodologies for secure transactions.

Developments are ongoing, profitable market segments are constantly changing, and tech giants are optimizing networks and ways of working. Sectors such as banking are threatened by the next "succession" as new competitors focus on the overall customer experience—the "front end" — and leaving the important but "invisible" back-end tasks to third parties.

The Covid-19 pandemic has accelerated the development of digital skills among the population, opening up traditionally "closed" markets and laying the foundations for a new landscape. Today, the rise of artificial intelligence is reinforcing this trend: Intelligent Digital Assistants (IDAs) automate processes, offer fully personalized services, and increase productivity, reduce costs, or both exponentially.

DAAs operate 365|24|7, maintain an incredible personal history that is instantly accessible, and use behavioral biometrics to ensure user identity and security.

Statements such as "we don't compete with the giants" or "that doesn't happen here" are still heard, but the reality is relentless. The world is changing faster, and succession is not only intergenerational but also intragenerational, and in no case is it a matter of inheritance.

In this context, succession planning in businesses is becoming critically important, especially in sectors where demographic shifts, technological developments, and changes in the macroeconomic environment are pushing the natural "aging of owners" into the background and require preparation. Succession is not simply the transfer of ownership, but ensuring continuity, maintaining customer trust, and adapting to all changes.

In family or traditional businesses, the new generation brings the right digital mindset, but without proper preparation, problems, conflicts, or loss of vital space can arise. This is where reorganization before succession comes in: it is essential for aligning the structure with new strategies, such as the integration of new forms of communication, work, data collection, and machine learning.

Without proper reorganization, the business may fall behind, with problems such as a lack of "strong" successors, emotional burdens, and loss of value. Reorganization involves the necessary redesign of workflows, compensation systems, and organizational structure to support innovation, reducing risks such as operational instability.

Research shows that timely reorganization strengthens employee and customer retention, reduces pressure on families and employees, and maximizes company value during succession.

To survive and thrive, businesses must evolve. Entrepreneurship and innovation must permeate the organization, with training in areas such as cybersecurity, blockchain, and artificial intelligence being a priority.

Most importantly, however, is a change in mindset. We must not consider the current situation to be permanent. We must reinvent our purpose and mission, embracing what may seem like a threat but is ultimately a great opportunity.

In this way, succession becomes a tool for renewal, aligning structures with talent and technology. Companies that embrace these trends will thrive, while others risk being marginalized. This has always been the case. The pace has changed; the world does not wait; it evolves, and we must evolve with it.

After all, in business, as in life, there is no standing still...